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Corporate Presentation - caixabank.com · Corporate Presentation 4Q 2019. 2 The purpose of this...
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Corporate
Presentation
4Q 2019
2
The purpose of this presentation is purely informative and should not be considered as a service or offer ofany financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange oracquire, or an invitation for offers to buy securities issued by CaixaBank, S.A. (“CaixaBank”) or any of thecompanies mentioned herein. The information contained herein is subject to, and must be read inconjunction with, all other publicly available information. Any person at any time acquiring securities mustdo so only on the basis of such person’s own judgment as to the merits or the suitability of the securitiesfor its purpose and only on such information as is contained in such public information set out in therelevant documentation filed by the issuer in the context of such specific issue having taken all suchprofessional or other advice as it considers necessary or appropriate in the circumstances and not inreliance on the information contained in this presentation.
CaixaBank cautions that this presentation might contain forward-looking statements concerning thedevelopment of our business and economic performance. Particularly, the financial information fromCaixaBank Group for the year 2019 related to results from investments has been prepared mainly based onestimates. While these statements are based on our current projections, judgments and futureexpectations concerning the development of our business, a number of risks, uncertainties and otherimportant factors could cause actual developments and results to differ materially from our expectations.Such factors include, but are not limited to the market general situation, macroeconomic factors,regulatory, political or government guidelines and trends, movements in domestic and internationalsecurities markets, currency exchange rates and interest rates, changes in the financial position,creditworthiness or solvency of our customers, debtors or counterparts.
Statements as to historical performance, historical share price or financial accretion are not intended tomean that future performance, future share price or future earnings for any period will necessarily matchor exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. Inaddition, it should be noted that although this presentation has been prepared based on accountingregisters kept by CaixaBank and by the rest of the Group companies it may contain certain adjustmentsand reclassifications in order to harmonize the accounting principles and criteria followed by suchcompanies with those followed by CaixaBank. Accordingly, and particularly in the case of Banco Portuguêsde Investimento (“BPI”), the relevant data included in this presentation may differ from those included inthe relevant financial information as published by BPI.
In particular, regarding the data provided by third parties, neither CaixaBank, nor any of its administrators,directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate,comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the casethat any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in byany means, CaixaBank may introduce any changes it deems suitable, may omit partially or completely anyof the elements of this presentation, and in case of any deviation between such a version and this one,CaixaBank assumes no liability for any discrepancy.
In relation to Alternative Performance Measures (APMs) as defined in the guidelines on AlternativePerformance Measures issued by the European Securities and Markets Authority on 30 June 2015(ESMA/2015/1057), this presentation uses certain APMs, which have not been audited, for a betterunderstanding of the company's financial performance. These measures are considered additionaldisclosures and in no case replace the financial information prepared under the International FinancialReporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures maydiffer to the way similar measures are calculated by other companies. Accordingly, they may not becomparable. Please refer to the Glossary section of the Business Activity and Results Report January –December 2019 of CaixaBank for a list of the APMs used along with the relevant reconciliation betweencertain indicators.
This presentation has not been submitted to the Comisión Nacional del Mercado de Valores (CNMV – theSpanish Stock Markets regulatory authority) for review or for approval. Its content is regulated by theSpanish law applicable at the date hereto, and it is not addressed to any person or any legal entity locatedin any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legalrequisites as required in other jurisdictions.
Notwithstanding any legal requirements, or any limitations imposed by CaixaBank which may beapplicable, permission is hereby expressly refused for any type of use or exploitation of the content of thispresentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibitionextends to any kind of reproduction, distribution, transmission to third parties, public communication orconversion by any other mean, for commercial purposes, without the previous express consent ofCaixaBank and/or other respective proprietary title holders. Any failure to observe this restriction mayconstitute a legal offence which may be sanctioned by the prevailing laws in such cases.
Presentation prepared with Group data at closing of 31 December 2019, unless otherwise noted Hereinafter “CABK” refers to CaixaBank stand-alone while “CABK Group” or “Group” refers to CaixaBank Group
Disclaimer
3
Contents
CAIXABANKAT A GLANCE
Page 3
01COMPETITIVE
STANCE
Page 12
02STRATEGIC
PLAN
Page 26
03ACTIVITY
& RESULTS
Page 40
04
4
CaixaBank Group: key figures(1)AT A GLANCE
(1) Figures refer to CaixaBank Group unless otherwise noted. (2) Market penetration-primary bank among Spanish retail clients. Source: FRS Inmark. (3) Share price multiplied by
the number of issued shares excluding treasury shares at closing of 31 December 2019. (4) PF €1Bn SP issuance in January 2020. (5) Moody’s, Standard & Poor’s, Fitch, DBRS. (6) #
of branches in Spain and Portugal, of which 3,918 are retail branches in Spain. (7) # of ATMs in Spain. (8) In Spain. Individual clients 20-74 years old with at least one transaction
in the last 12 months.
# Clients (Total, in M), 24.4% as main bank in Spain(2) 15.6
Consolidated balance sheet (€ Bn) 391.4
Customer loans and advances (€ Bn) 227.4
Customer funds (€ Bn) 384.3
Solid balance sheet and P&L metrics
Unique omni-channel distribution platform
Leading retail franchise in Iberia
Employees 35,736
Branches (#)(6) 4,595
ATMs (#)(7) 9,111
Digital clients(8) as % of total clients 61.7%
Market capitalisation (€ Bn)(3) 17
FY19 Attributable profit (€ M) 1,705
CET1/MREL ratios (%) 12.0%/22.5%(4)
Long Term Ratings(5) Baa1/BBB+/BBB+/A
Dec-2019
5
CaixaBank Group at a glance(1)AT A GLANCE
Leading retail bancassurance
franchise in Iberia
Group RoTE TTM at
10.8% adjusted(6)
Solid balance sheet
metrics
A responsible bank with
solid heritage and values
Baa1/BBB+/BBB+/A
• Included in leading sustainability indices(9)
• Highly-rated brand: based on trust and
excellence in quality of service
• MicroBank: Spanish and European
reference in micro-credit
• Over 115-year history, with deeply rooted
values: quality, trust and social
commitment
1,705
7.7%/10.8% adj.(6)
57.4%
0.15%
(1) Figures as of 31 December 2019 and referring to CaixaBank Group, unless otherwise noted. (2) Market penetration-primary bank among retail clients in Spain aged 18 or above. Source: FRS Inmark 2019. (3) Individual customers aged 20-74 years old with at least
one transaction in the last 12 months. (4) # of branches in Spain and Portugal, of which 3,918 are retail branches in Spain. (5) #1 bank by total assets in Spain (based on public information as of December 2019). (6) RoTE excluding restructuring expenses. (7) NII, net
fees, life-risk insurance premia and equity accounted income from SegurCaixa Adeslas and other BPI bancassurance stakes. (8) Moody’s, Standard&Poor’s, Fitch, DBRS. (9) Including among others: MSCI Global Sustainability, DJSI, FTSE4Good, Ethibel Sustainability
Index (ESI), STOXX® Global ESG Leaders, CDP A-List.
+1.2% yoy
RoTE (TTM)
FY19 Net profit (€ M)
Core revenues FY19(7)
Core C/I (TTM)
CoR (TTM)
Customers (M)
Preferred bank-Spain(2) (%)
Digital clients-Spain(3)/total (%)
Branches(4)
Balance sheet(5) (€ Bn)
15.6
24.4%
61.7%
4,595
391.4
NPL coverage ratio
Liquid assets (€ Bn)
LCR 12M average
CET1/Tot. cap. (%)
Long Term Ratings(8)
55%
89
186%
12.0%/15.7%
6
The “bank of choice” for Spanish retail customersAT A GLANCE
Leader in retail banking
Scale & capillarity
Advisory & proximity
Comprehensive offering
IT & digitalisation
A one-stop distribution model
for lifetime finance and
insurance needs
Retail client penetration (Spain)(1)
Peer 3
Peer 2
Peer 1
28%
17%
17%
14%
The highest digital penetration
Market penetration among digital clients (Spain)(2)
14%
20%
23%
30%
Peer 3
Peer 2
Peer 1
#1 Mutual Funds #1 Life
insurance #1 Health insurance #1 Payments(49%)(49.9%)
(1) Retail clients in Spain aged 18 or above. Peer group includes: Banco Santander (including Popular), BBVA, Bankia. Source: FRS Inmark 2019.
(2) 12 month average, latest available data as of December 2019. CaixaBank ex BPI; peer group includes: Banco Sabadell, Banco Santander, BBVA. Source: Comscore.
7
Financial strength: solid P&L and balance sheet metricsAT A GLANCE
~ 12%Target 2021E:
+ 1pp buffer
DEC 2019
11.6% 12.4% 11.7% 11.5% 12.0%
8.78%
D-15 D-16 D-17 D-18 D-19 SREP 2020
63
50
7380
89
D-15 D-16 D-17 D-18 D-19
Solid capital in line with internal target and well above requirements
CET1 Basel III FL In % of RWAs
Ample liquidity remains a hallmark
Liquid assets (end of period), in €Bn
LCR(3)
NSFR(4)
TLTRO
II/III
129%
186%
€3.9Bn /
€9.0Bn
10.8%RoTE TTM adj.(1)
230 316
620814
1,047
1,684
1,985
1,705
2012 2013 2014 2015 2016 2017 2018 2019
Sustained profitability improvement after the crisisNet income, €M
Significant de-riskingNPL ratio, in % NPAs(2)
-73% 2014-2019
7.7%RoTE TTM
8.6%
11.7%
9.7%
7.9%
6.9%6.0%
4.7%3.6%
D-12 D-13 D-14 D-15 D-16 D-17 D-18 D-19
(1) RoTE excluding restructuring expenses. (2) NPLs (including contingent liabilities) + OREO, all gross value. CABK ex BPI, December 2019 vs. 2014 PF Barclays Spain. (3) 12 month average. (4) End of period. Best estimate
according to the new CRR criteria (Regulation (EU) 2019/876 of 20 May 2019).
8
AT A GLANCE
We are a uniquely differentiated bank: profitability and returns to society are fully aligned
Cash payout 2019E-2021E(4) >50%
CaixaBank shareholders
40% stake at CaixaBank owned by “la Caixa”
~578,000 Retail shareholders
€545 M21%
57%
Research
Social
“la Caixa” Social Welfare budget 2019: breakdown in % of total(1)
Main programmes: Beneficiaries since program began until YE2018
Diversified institutional investor base
22% Culture & education
Education, exhibitions and post-grad training(2)
Neurodegenerative diseases, oncology, cardiovascular, infectious and other illnesses
Child poverty >303,900
Job access >223,800
Palliative care >365,300
FY 2019 53%Net income€1,705M
Cash payout(3)
(1) Source: “la Caixa” Annual Report 2018. (2) 4,771 scholarships awarded since the program inception (until year-end 2018). (3) Approved by the Board for proposal to the AGM. (4) At the beginning of the year, when reporting the results of the previous
financial year, CaixaBank’s Board of Directors may set a cap on cash payout for dividend accrual purposes in regulatory capital. For FY2019 and FY2020, the Board of Directors approved a cap of 60%.
9
AT A GLANCE
Setting the benchmark in responsible banking is and has always been a key priority in the Group strategy
1. Best-in-class in quality of service and reputation
2. Sustainable profitability above cost of capital
3. Optimisation of capital allocation
4. Enhance our leadership in banking digitalisation
5. Retain and attract the best talent
Strategic Priorities 2015-2018
1. Offer the best customer experience
2. Accelerate digital transformation to boost efficiency and flexibility
3. Foster a people-centric, agile and collaborative culture
4. Attractive shareholder returns and solid financials
5. A benchmark in responsible banking and social commitment
Strategic Priorities 2019-2021
20
15 • Launch of Strategic Plan 2015-18
• CSR Policy approved by the BoD
Examples of recent milestones
20
17 • Socially Responsible
Banking Plan approved
by the BoD
Feb
20
18
• CSR(1) Policy
update
• Human Rights
Policy update
• Strategic Plan 2019-21
approved and
presented to the
market (Investor Day)
No
v
20
18
Feb
20
19
• Environmental Risk
Management Policy
• Environmental Risk Committee
• Statement on Climate Change
• Environmental Risk
Mgmt. Roadmap
2019-21
May
20
19
Au
g
20
19
• SDG Bond
Framework
publication
• Inaugural Social Bond – SNP
• Signature Principles Responsible
Banking UNEP FI
Sep
20
19
Dec
20
19
• Join UN Collective
Commitment to
Climate Action
Jan
20
20 • CDP
A-list
(1) Corporate Social Responsibility.
Francesc MoragasFounded “la Caixa” in 1904
Delivering responsible banking since 1904
“I am the most ambitious man in the world: having no needs of my own, I made mine those of others”
10
AT A GLANCE
Delivering on corporate responsibility aims
Socially Responsible Banking Plan - Main corporate responsibility aims
Integrity, transparency
and diversityEthical and responsible
behaviour & Simple and
transparent language
GovernanceBest governance
practices, Reputational
Risk Management &
Responsible policies
EnvironmentIncorporating social and
environmental criteria in
risk analysis, products
and services
Financial inclusionMicrocredits, Accessible,
close and multi-channel
banking & Financial
culture
Social commitmentCorporate volunteering &
Alliance with “la Caixa”
Corporate Values Main highlights & Commitments
(1)
• MicroBank, the Group’s social bank, is a leader in the field of social inclusion, using micro-loans and lending with a
social impact
• Present in 100% of the towns of more than 10,000 inhabitants and in 94% of the towns of more than 5,000 inhabitants
• >18,500 social housing units, the main private social housing stock in the country
• Issuance in 2019 of a €1.0Bn SDG-linked bond
• €44.7 M of “la Caixa”’s budget channelled through CaixaBank’s branch network to support local social needs
• Corporate Volunteering programme (>15,000 Group employees as active participants)
• Signatories of the Principles for Responsible Banking. Members of the UNEP FI
• Equator Principles’ signatories: consideration of social and environmental impacts in financing large projects
• PRI signatories: Pension plans and Funds are managed under ESG criteria
• Chairing the Spanish Network of the United Nations Global Compact since 2012
Quality
Trust
Social
Commitment
(1) The inclusion of CaixaBank in any of the MSCI Indexes and the use of the Logos, Brands or Names of the indexes does not imply Sponsorship, Assignment, or Advertising of CaixaBank by MSCI or associated companies.
The MSCI indexes are the exclusive property if MSCI. MSCI and the MSCI Index Names and Logos are trademarks or service marks of MSCI and its associated companies.
11
AT A GLANCE
The Iberian economies show resilience
GDP growth% YoY
2.4
2.4
1.9
1.7
1.6
0.7
1.8
1.9
1.1
1.1
0.6
0.2
Spain
Portugal
Euro Area
France
Germany
Italy
2018 Avg. 2019-20e (forecast)
Trends provide support for loan volumes and asset quality
Unemployment rate%
Total bank-credit growthOutstanding bank credit to ORS (industry)(1), % YoY
26.1%24.4%
22.1%19.6%
17.2%15.3%
14.1% 13.6%
2013 2014 2015 2016 2017 2018 2019 2020e
16.2%
13.9%12.4%
11.1%8.9%
7.0% 6.5% 6.4%
2013 2014 2015 2016 2017 2018 2019 2020e
Spain
-9.4%-7.1%
-4.3%-2.9%
-1.9% -2.6%-1.2%
1.2%
2013 2014 2015 2016 2017 2018 2019 2020e
-5.0%
-7.9%
-4.2% -3.8%-2.7%
-1.5%
0.7%
2013 2014 2015 2016 2017 2018 2019e
Portugal
(1) Loans to “Other Resident Sectors” excluding to financial services companies.
Sources: Eurostat, Bank of Spain and Bank of Portugal and CaixaBank Research (all forecasts 2019E-2020E). Forecasts as of 3 March 2020.
12
Contents
CAIXABANKAT A GLANCE
Page 4
01COMPETITIVE
STANCE
Page 12
02STRATEGIC
PLAN
Page 26
03ACTIVITY
& RESULTS
Page 40
04
13
A one-stop shop for lifetime finance and insurance needsCOMPETITIVE STANCE
Much more than just a bank
Scale
and capillarity
Proximity/ customer
intimacy
Comprehensive
offering
Wide and bespoke with
100% owned factories
IT and
digitalisation
Mobility and big data
Advisory
Focus on capabilities and
quality of service
15.6M
3,918
9,111
Clients (total)
Retail branches (Spain)
ATMs (Spain)
61.7%
29.7%
1.5M
% Digital clients(1)
Digital penetration(2)
imaginBankclients
~18,075
>1.7M
>118,000
Certifiedadvisors (Spain)
Affluent banking clients (Spain)
Private banking clients (Spain)
#1
#1
#1
Insurance Group (Spain)
AM (Spain)
Payments (Spain)
Provides unique advantages in current operating environment
(1) In Spain. Individual clients 20-74 years old with at least one transaction in the last 12 months. (2) 12 month average, latest available data as of Dec-2019. In Spain. CaixaBank ex BPI. Source: ComScore.
Sources: Bank of Spain, ICEA, Inverco, Comscore.
14
Our leading market position generates valuable network effectsCOMPETITIVE STANCE
Leading franchise in Spanish retail banking with strong market shares across the board
POS terminal Turnover
Credit cards turnover
Health insurance
Life-risk insurance
Savings Insurance
Mutual Funds
Pension Plans
Primary bank for businesses
Business penetration
Home purchase loans
Pensions deposits
Payroll deposits
Loans
Deposits
Primary bank for retail clients
Retail client penetration
Mass retail
banking
AuM
Payments
Insurance
Individuals
Businesses
€
27.8%
24.4%
15.7%
27.1%
17.8%
28.0%
23.5%
15.3%
44.4%
17.1%
25.5%
20.3%
27.5%
20.0%
15.9%
30.1%
(1)
(2)
(3)
(3)
(2)
20.4%
15.6%
10.2%
9.1%
14.4%
12.5%
11.3%
42.7%
16.4%
11.2%
5.6%
14.6%
9.1%
23.2%
17.6%
17.8%
(1)
2019 Best Bank in Spain
27.8%
#1 Retail client
penetration(1) (Spain)
#1 Primary bank for
retail clients(1) (Spain)
24.4%
Customer loyalty and satisfaction lead to sustained growth in market-shares
CABK Market share by key products in Spain, % Market share 2007Growth since 2007
(1) Spanish customers older than 18 years of age. Source: FRS Inmark 2019. (2) Deposit included demand and time deposits and loan data to the other resident sectors as per Bank of Spain data. (3) Businesses: firms with turnover €1M-€100M. Latest data for
2019; initial data for 2008 (bi-annual survey). Source: FRS Inmark survey.
Source: FRS Inmark, Social Security, BoS, INVERCO, ICEA, AEF and Cards and Payments System.
15
Best-in-class omni-channel distribution platform with multi-product capabilities
COMPETITIVE STANCE
Customer behaviour is changing rapidly but branches are still critical
The largest physical footprint in Spain
3,918retail branches
17%market share
Leader in digital channels in Spain
Employees with mobile equipment
CABK Branch
market share by
province(1), %
<10%
>15%
10-15%
Of our clients are digital(3)
4.45.1
6.06.5
2014 2016 2018 2019
56% Omni-channel
(digital & physical)
44%Exclusively digital
CABK, digital clients(3) (M)
61.7%
22%Of transactions
30%Penetration(2)
+46%CAGR 2014-19
39%Of transactions
9,111 ATMs
18%market share
(1) Source: Bank of Spain. (2) 12 month average. Latest available data as of December 2019. Source: ComScore. (3) Customers aged 20-74 years old with at least one transaction in the last 12 months.
16
2008-2019: more than a decade of segmenting and rightsizing the distribution network
(1) BCIV, Barclays Spain, Banco de Valencia, Caixa Girona.
(2) Barclays Spain retail branches are not included (#261)
COMPETITIVE STANCE
Store
3,918
2008 2014(2) 2018
5,296CABK
2,365Acquisitions(1)
(2008-2018)5,097
7,661
PF Acquisitions(1)
461BPI retail branches
YE19
443
- 49%
4,409
Retail branches in Spain
Specialised branches/managers in Spain
Digital and remote channel development (e.g., CaixaBankNow, imaginBank, inTouch)
Constant evolution of the
distribution network:
concentration of retail branches,
creation of specialised branches
and development of the best
digital offering
17
Supporting clients internationally and developing joint business initiatives
COMPETITIVE STANCE
• Influential position
• Building strategic alliances
• Sharing best practices
• JVs and project development
JV with Erste and Global Payments
Payment
services
Czech Rep.,
Slovakia,
Romania
EBG: 49% Global
Payments +
CABK: 51%% stake 9.92%
(1) As of 3 March 2020.
Non-controlled International Banking Stakes
Representation offices & international branches(1) to better serve our clients
Representative
office
International
branch
Spanish
Desk
BPI
Representative
Offices18Algiers, Beijing, Bogotá, Cairo, Dubai,
Hong Kong, Istanbul, Johannesburg, Lima,
Milan, Shanghai, New Delhi, New York,
Santiago de Chile, Sao Paulo, Singapore,
Sydney, Toronto
International
branches (7 offices)5
Mexico City
Spanish
Desks2
Warsaw
Morocco with three
offices:
• Casablanca
• Tangier
• Agadir
Vienna
London
Frankfurt
Paris
18
Economies of scale and technology are key drivers of operational efficiency
COMPETITIVE STANCE
Minimal HQ staffHQ staff as % of total employees(1)
Light branch modelEmployees/branch(2)
CaixaBank
Acquisition 1
Acquisition 2
Acquisition 3
7%
17%
20%
30%
CaixaBank
Spanish sector avg.
Euro area avg. 13.7
7.3
6.7
Scale economies yield cost benefitsGeneral expenses(3)/gross income, in %
20.1
21.5
23.9
24.1
24.4
CABK
Peer 1
Peer 2
Peer 3
Peer 4
(1) Data as of December 2019 for CaixaBank ex BPI and own estimates as of the acquisition date for the acquired entities (Banca Cívica, Banco de Valencia and Barclays). (2) CaixaBank ex BPI figures as of December 2019 and Spanish sector average and euro
area figures as of 2018. (3) General expenses and amortisations, December 2019 TTM. Recurrent expenses for CABK (ex BPI) and SAB. Peers include: Bankia, Bankinter, BBVA Spain + RE business, Sabadell (ex TSB).
19
Digital channels are a complement that result in improved customer experience and higher sales
COMPETITIVE STANCE
The highest digital penetration
14%
14%
20%
23%
30%
Peer 4
Peer 3
Peer 2
Peer 1
CaixaBank Now
CABK
Market penetration among digital clients(1) in %
Innovative offering – increasing own and third party value-added services(4)
Continuously improving customer experience
61.7%6.5M digital clients (2)(3)
% digital clients (2)
4.3M users
Aggregator Especially valuable for affluent clients
1.5M clients
Steady growth in payments through
mobile
x 2.7
Credit cards stored in mobiles
# transactions vs. 2018
1.9M
Biometric in digital onboarding and
facial recognition in ATMs
Tech Project of the Year
2019 for Biometric
ATM’s - The Banker
1.8M Clients connecting daily (+21% yoy)
Not just “anytime, anyplace, anywhere” but also a bespoke offering
(1) 12 month average, latest available data as of December 2019. In Spain. CaixaBank ex BPI; peer group includes: Bankia, Banco Sabadell, Banco Santander, BBVA. Source: Comscore. (2) In Spain. Individual clients 20-74 years old with at least one
transaction in the last 12 months. Ambition 2021e (Spain): c.70% of digital clients. (3) Of which 5.6M mobile clients.
4.5 4.6
20
COMPETITIVE STANCE
Promoting new digital and remote relationship models
#1 mobile-only bank in Spain
One of the top financial apps as rated
by customers
4.6
4.6
Aligned with best fintech solutions
“Gina” Chatbot ,
instant loans,
insurance…
Partnerships with third parties
0.91.0
1.5
2017 2018 2019
# of Imagin clients, in M
(launched in 2016)
Constant product and
functionality developments
0.2
0.7
1.3
JUN-18 DEC-18 DEC-19
Clients using inTouch, in M (launched in 2018)• Longer opening hours
• Opportunity to boost loyalty
• Customer with a digital
profile, infrequent branch
access and limited time
availability
Hybrid remote relationship model
Customers
/ employee
x2.5vs. physical branch
# customers: Strategic Plan
2019-21 ambition
2.6M
Our mobile-only
offering to compete with neo banks and new entrants
Opportunity to seize new growth
through a hybrid model
21
COMPETITIVE STANCE
At the forefront of digitalisation
(1) Sales executed via electronic channels (web, mobile and ATM). (2) September 2019 YoY. (3) % of documentation related to product acquisition that is digitalised. CABK ex BPI. (4) During branch opening hours.
Leveraging IT for commercial effectiveness…
…while boosting efficiency and facilitating compliance
100%
SMART PCs DIGITAL SALES
38% of consumer loans(1)
VIRTUAL ASSISTANT (EMPLOYEES AND CUSTOMERS)
x2.4 Conversations(2)
100%
DIGITAL PROCESSES(3)
99%
DIGITAL SIGNATURES AUTOMATION
18.5%administrative tasks in
branches (42% 2006)
Staff time is freed-up to concentrate on client interaction and value creation
Scalable and efficient sales-oriented network
CABK (ex BPI) Task absorption at the branch(4) (%)
CABK
9.6%Branches
90.4%ATMs
22
COMPETITIVE STANCE
A unique advisory model
Best Private Bank in
Spain 2019
The Banker/PWM
Best Private Bank for digital
client communication 2019
– Global
PWM (FT Group)
Digitalisation to better serve clients
~18,075 employees certified in advisory
Systematic commercial practices adapted to the client
Extensive, diverse and tailor-made solutions
Managed portfolios as % of mutual funds AuM(1)
>50%
Market share in
long-term
savings(2)
22.5%
+70 bps ytd
(1) AuM managed by CaixaBank AM under discretionary management mandate. Excluding third-party funds. December 2019. (2) Including mutual funds (with managed portfolios and SICAVs), pension plans and life-savings insurance. CABK ex BPI. Based on
data as of December 2019 for mutual funds (CABK AM) and pension plans and on internal estimates for savings insurance. Sources: INVERCO, ICEA, latest available data.
23
COMPETITIVE STANCE
Captive product factories facilitate innovation and agility
A resilient model for a low rate environment
Insurance: life and non-life
Asset management
Consumer financing and payments
Microcredit
100% 49.9%
100%
new microcredit to
households
micro-credits granted since
MicroBank was created in 2007
>955,000
European reference in micro-credits
49% 100%
(Life)(Payments at POS)
(Non-Life)
(1) January-June 2019. Premia Non-Life insurance. (2) January-December 2019. (3) September 2019. (4) January-September 2019.
17.1% market share in
mutual funds (Spain) €68.6 Bn AuM
#1 in Spain
Ownership
Ownership OwnershipOwnership Ownership
€93.0 Bn AuM
#1 in Spain
€2.7 Bn Premia(1)
#1 in Health
Insurance
Spain
Ownership100%
>80% yoy
€55 Bn turnover(2)
448,176 PoS(3)
€4.3 Bn new consumer
finance business(4)
€34.7 Bn Credit card
turnover(4) #1 in Spain
24
COMPETITIVE STANCE
Premium brand reputation with ample external recognition
Premium
brand
reputation
Dow Jones
Sustainability Index
Among world’s top
banks in ESG
Most responsible financial
institution & best corporate
governance
Merco
Best Bank in Spain 2019
Best Bank in Western
Europe 2019
Global Finance
Best Bank in Spain 2019
Best Bank for Corporate Responsibility in Western Europe 2019
Best Bank Transformation in Western Europe 2019
Euromoney
Best Private Bank in
Spain 2019
The Banker/PWM
Wide
recognition of
leading IT
infrastructure Most Innovative
Financial Institution in
Western Europe 2019
Global Finance
Best Private Bank for
digital client
communication 2019 –
Global
PWM (FT Group)
Tech Project of the Year 2019
“Delivery channels” category
(Biometric ATM’s)
The Banker
Best innovation in
marketing – Global
Innovation Awards
BAI
Global Winner Project
2019 - “Analytics & AI”
category
EFMA/Accenture
Best Consumer Digital Bank in
Spain and in Western Europe 2019
Best Consumer Mobile Banking
app in the World 2019
Global Finance
BPI: Premium
brand and
innovation
recognitions Excellence
Brand 2019
Superbrands
#1 Brand 2020 –
Big Banks category
Reader’s Digest
#1 Brand 2020 -
Big Banks category
5 estrelas
Best Private Bank for digitally
empowering relationship
managers 2019 - Europe
PWM (FT Group)
Best Digital Team 2019
PayTech Digital Awards
Last updated on 4 March 2020.
Most Trusted Bank
Brand in Portugal 2019
Reader’s Digest
25
Contents
CAIXABANKAT A GLANCE
Page 3
01COMPETITIVE
STANCE
Page 12
02STRATEGIC
PLAN
Page 26
03ACTIVITY
& RESULTS
Page 40
04
26
Emerging from the crisis and the 2015-18 period as a clear winnerSTRATEGIC PLAN
A proven business model in a negative rates environment
01 02 03Excellent commercial performance
Profitability already covers the cost of capital
Simplification and reorganisationof the Group
Reinforcement of the leading Iberian retail-banking franchise
With bancassurance segment as the main contributor
Fully-focused on the core business in Spain and Portugal
27
A streamlined structure facilitates full attention on our
bancassurance model
STRATEGIC PLAN
Reorganisation of “la Caixa” Group Increased focus on our core business
100%
40%
BancassuranceSpain and Portugal
+ Strategic partnerships:
CaixaBank board distribution(1), %
The foundation no longer
controls the board
37.5%“la Caixa” (2)
Other (3)
• Lead independent director
• Non-executive Chairman
• Clear separation of roles
Decreasing weight of non-strategic assets
• Boursorama (2015)
• BEA & Inbursa (2016)
• Repsol (2019)
• NPAs: -73% 2014-2019 (4)
Taking control of BPI
• Fully integrated into our bancassurance activity
• Opportunity to replicate CABK model in Portugal
(1) Includes all the changes agreed at the AGM on the 5th April 2019. Refer to Significant Event number 276874 (CNMV) for additional information. (2) Includes 6 proprietary directors representing “la Caixa”. (3) Includes 7 independent directors, 1 proprietary
director proposed by Mutua Madrileña, 1 proprietary proposed by the banking foundations formerly comprising Banca Cívica and the CEO. (4) NPLs (including contingent liabilities) + OREO. CABK ex BPI, December 2019 vs. 2014 PF Barclays Spain (gross
value).
62.5%
28
Solid economic recovery but…
• Negative interest rates for 3 years of the Plan
• Subdued loan volumes lower than expected
• Mortgage floor removal
• Competitive pressures in certain segments
• Regulation more… and more demanding
Delivering on 2018 strategic financial targetsSTRATEGIC PLAN
(1) Targets revised in the mid-term review of the plan (December 2016). (2) NII + Fees + insurance revenues from life-risk premia and equity accounted income from SegurCaixa Adeslas. (3) Recurrent administrative expenses, depreciation and amortization. 2014
PF w/Barclays Spain. (4) Trailing 12M.
Profitability
Capital
RoTE
Recurrent C/I ratio
Core revenues CABK (2)
Rec. operating exp. CABK (3)
Cost of risk (4)
Cash dividend pay-out
2018 Target (1) 2018
9-11%
~55%
~4 CAGR 2017-2018
Flat 2014
<40 bps
9.3%
53%
6%
~0% vs FY14
4 bps
11-12% 11.5%
≥50% 55%Avg. 2015-18
Building our 2019-21 Strategic Plan on solid foundations
CET1 FL %
Total Capital FL % ≥14.5% 15.3%
29
STRATEGIC PLAN
2016 Results
Cash€ 0.07
Cash€ 0.03
Scrip€ 0.04
Cash€ 0.06
Cash€ 0.07
Cash€ 0.08
2015 Results
Scrip€ 0.04
Cash€ 0.04
Scrip€ 0.04
Cash€ 0.04
Cash€ 0.10
Shareholder Remuneration Policy
2015-18 Strategic Plan
Cash dividend payout
≥ 50% from 2015
Transition to full cash dividend in 2017
Actively seeking to return capital to shareholders
(1) Total shareholder remuneration for 2018 has been €0.17/share (gross), equivalent to a pay-out of 51% of consolidated net profit, in line with the 2015-18 Strategic Plan. Note: The Board of Directors approved a change in dividend policy from 2019
(included) whereby shareholder remuneration will take place through a single cash payment, which will be paid once the fiscal year has been closed, around the month of April. See further details in the Significant Event #274380.
SEP 2016 DEC 2016 APR 2017
NOV 2017 APR 2018
NOV 2018 APR 2019
SEP 2015 DEC 2015 JUN 2016MAR 2016
2018 Results(1)
2017 Results
Dividend 2019 €0.15/share approved by the Board for proposal to the AGM Cash payout of 53%
30
STRATEGIC PLAN 2019-2021
2019-2021 Strategic Plan
Offer the best customer experience
Accelerate digital transformation to boost efficiency and flexibility
Foster a people-centric, agile and collaborative culture
Attractive shareholder returns and solid financials
A benchmark in responsible banking and social commitment
2019-2021 STRATEGIC PRIORITIES
STRATEGIC VISIONA leading and innovative financial Group, with the best
customer service and a benchmark in responsible banking
31
STRATEGIC PLAN 2019-2021
Levers to fuel growth and drive our Customer Experience strategy
1 2
3 4
Continue to transform the distribution network
to provide higher added value to the customer
Strengthen the remote and digital
customer relationship model
Partnerships to broaden offering and
build an ecosystem “beyond banking”
Segmentation and focus on
customer journey
“Store” branches (new format) 2021E(1)
vs. 475 by Dec-2019(2)
c.40%
Urban
branches2018-2021E(2)
Rural
network2018-2021E(2)
Maintain 2.6MCustomers
using inTouch(4)
2021E (1.3M Dec- 2019)
70%
Digital clients(3)
2021E vs. 61.7% by
Dec-2019
#1
Mobile-
only bank
in Spain
> 600
Reduction of more than 800 retail branches (Spain)
Redesign of
processes and
interaction
Aiming at significantly
improving NPS(5) and
conversion rates
Daily banking
Savings & financial
planning
Insurance &
protectionLending
CABK is a powerful platform to
generate value through alliances:
• c.14M clients (Spain)
• >5M direct transactions/day
• >10Bn transactions/year
(1) Projection presented in Investor Day. Delivery date updated in 1H19 results to June 2020. (2) In Spain. Including 17 store branches work-in-process as of January 2020. Extended opening hours. (3) Individual customers aged 20-74 years old with at least
one transaction in the last 12 months. (4) Remote account manager service. Projection presented in Investor Day. Delivery date updated in 1H19 results to December 2020. (5) Net promoter score: percentage of promoters minus percentage of detractors.
STRATEGIC PRIORITY #1
32
STRATEGIC PLAN 2019-2021
We will continue to improve flexibility,
scalability and efficiency of IT infrastructures
Note: As presented in Investor Day in November 2018.
Continue shifting to cloud processing and solutions(to ~ 50% cloud adoption)
Progressively migrate to an internal – API based IT architecture
Extend scope and use of agile methodology
Continue to invest in cybersecurity
Build an additional Data Centre
Foster use of collaborative tools across the organisation
Moreover, systematic application of Data Analytics across all the organisation
Data and Analytics are a bedrock that supports our transformational journey
Benefits
• Cost-efficiency
• Outsourcing diversification
• Time-to-market reduction
• Increase cadence of releases
• Flexibility and scalability
• Resilience
• Ability to extend to ecosystems
32
STRATEGIC PRIORITY #2
33
STRATEGIC PLAN 2019-2021
Talent development is and will continue to be a top priority
(1) As presented in Investor Day in November 2018.
Value to the client and time-to-market• Organisational redesign
• Foster culture of agility (extensive application of agile methodologies)
We have been heavily investing
in talent development
A significant proportion of
employees has been reskilled
We have redesigned processes
to favour meritocracy and
attract and develop talent
• Masters in Advisory • School of Risk Mgmt
• Leadership capabilities • School of Leadership
• Business managers
• Private Bank managers
• Affluent Bank managers
• CIB managers
• “InTouch”
• Promotion, incentives, appraisal, communication
~16,440 employees
~6,400 employees(1)
100% employees
The best team
STRATEGIC PRIORITY #3
Goals
34
STRATEGIC PLAN 2019-2021
Core revenue growth and lower NPA costs drive RoTE improvement
STRATEGIC PRIORITY #4
9.7%
14.4%
>12%
>10%
+0.7
+1.4
+1.2
+0.9+0.5
+0.9+0.6 (0.6)
(0.9)
(1.8) +0.8 (1.0)
RoTE Sep-18TTM, adj.
Businesslending
Consumerlending
L/t savings Protection Payments Mortgages BPI MREL &TLTRO
Other core -CABK
Operatingexpenses
NPAreduction
1% Capitalbuffer
Other RoTE 2021E RoTE 2021Eflat interest
ratesAhead of
regulation
1 2 3 4
Core-revenue
growth
(3)
(4)
Investing
and
transforming
(2)
RoTE(1) bridge Sep-2018 TTM – 2021E, in % and pp post-tax
De-
risking
(1) Tangible equity redefined as own funds (including valuation adj.) minus intangible assets. (2) RoTE adjusted for one-offs (REP disposal, ServiHabitat repurchase and extraordinary provision write-back in 3Q18) and pro-forma excluding REP and BFA
earnings. (3) Includes other core revenues (CABK) not included in previous categories and other than funding costs (which are allocated among previous categories). (4) Including other P&L and equity impacts.
BFA results are not included in projections
35
3.4%
10.8%> 12%
2014 2019 adj. 2021E
11.3%12.0% 12%
1%
2014 PF BBSAU Dec 2019 2021E
Capital distribution supported by
sustainable earnings and strong capital position
STRATEGIC PLAN 2019-2021
(1) At the beginning of each year, when reporting the results of the previous financial year, the Board of Directors may set a cap on cash payout for dividend accrual purposes in regulatory capital. (2) Trailing 12 months. RoTE 2021E based on new definition,
including valuation adjustments in tangible equity. RoTE 2019 including AOCI in the denominator and excluding restructuring charges in 2Q19 (€685M post-tax) (considering such expenses, RoTE ttm stands at 7.7%). RoTE 2014 as reported.
RoTE(2), in %
Reinforced cash-payout capacityCET1 B-III, %
>50%2019E-21E
Cash payout: from ≥ 50%
2015-18 to
55% Average 2015-18
For FY 2019 and FY 2020, the Board(1)
approved a cap of 60%
Use of capital generation Shareholder
remuneration
Transitional
buffer (1%)
Business opportunities
and transformation
STRATEGIC PRIORITY #4
+12% +1%
8.78%
Well-above
requirement
SREP 2020
(2)
36
Financial targetsSTRATEGIC PLAN 2019-2021
(1) Core revenue growth assuming NII growth of c.5% CAGR 2019-21E. In a flat-rate scenario (interest rates flat at Nov-18 levels) NII growth target at c.1% CAGR 2019-21E. (2) >10% in a flat-rate scenario (interest rates flat at Nov-18 levels).
Core revenues
~5%(1)
CAGR 2019E-21E
Core C/I ratio
<55%
2021E
RoTE(2)
>12%
2021E
Performing loans
~1%
CAGR 2019E-21E
AuM + insur. funds
~5-6%
CAGR 2019E-21E
NPL ratio / CoR
<3%/<0.30%
2021E
CET1 FL - BIII
~12% + 1pp
2021E
Cash payout
>50%
2019E-21E
LCR
>130%
2021E
2019E-21E
STRATEGIC PRIORITY #4
Balance sheet
Capital & liquidity
Profitability
37
We are a socially responsible bank and we intend to reinforce it
STRATEGIC PLAN 2019-2021
Responsible Banking Plan
STRATEGIC PRIORITY #5
2019-2021Priorities
Reinforce our culture of transparency
Build the most diverse and talented team
Foster responsible and sustainable financing
Manage ESG and climate-related risks
Improve efficiency and reduce carbon footprint
Maintain commitment to financial inclusion
Contribute to improve society’s financial culture
Promote social initiatives at local level
0105SOCIAL
ACTION AND
VOLUNTEERING
02
03
04
INTEGRITY,
TRANSPARENCY
AND DIVERSITY
GOVERNANCE
ENVIRONMENTAL
FINANCIAL
INCLUSION
ENVIRONMENTAL
38
SDG are integrated into the Strategic Plan and the Socially Responsible Banking Plan 2019-2021
STRATEGIC PLAN 2019-2021
(1) Considering deputy-director positions in branches type A and B and above. CABK S.A. (2) CABK S.A. (3) Spanish association for commercial self-regulation for good advertising practices. (4) The inclusion of CaixaBank in any
of the MSCI Indexes and the use of the Logos, Brands or Names of the indexes does not imply Sponsorship, Assignment, or Advertising of CaixaBank by MSCI or associated companies. The MSCI indexes are the exclusive
property if MSCI. MSCI and the MSCI Index Names and Logos are trademarks or service marks of MSCI and its associated companies. All data corresponding to 2018 except when noted.
CaixaBank has held the presidency of the Spanish Network of the UNGC since 2012
CaixaBank’s contribution to SDGs
PRIORITY
• €725M in micro-credits granted
• 20,174 jobs created through micro-credits granted
• 16,812 micro-credits to entrepreneurs and businesses
• €1,000M Inaugural Social Bond (5yr SNP)
IMPORTANT
• 41.3% of management positions are held by women(1)
• €931M invested in IT and development at CABK
• Offset 100% of estimated CO2 emissions(2)
• €2,453M granted to finance renewable energy projects(2)
COMPLEMENTARY
• Collaboration with GAVI (the vaccine alliance) through “la Caixa”
• #FinanzasXaFollowers
• Adhered to RE 100 initiative since 2016 (1st Spanish org. to do so)
• >18,500 social housing units
• Human rights policy and adherence to Auto-control(3)
Included in leading sustainability indices(4)
STRATEGIC PRIORITY #5
39
Contents
CAIXABANKAT A GLANCE
Page 3
01COMPETITIVE
STANCE
Page 12
02STRATEGIC
PLAN
Page 26
03ACTIVITY
& RESULTS
Page 40
04
40
FY2019: solid operating performance with noteworthy improvement
in balance-sheet metrics
ACTIVITY & RESULTS
(1) NII, fees, life-risk insurance premia and equity accounted income from SegurCaixa Adeslas and other BPI stakes. (2) Fees, life-risk insurance premia and equity accounted income from SegurCaixa Adeslas and other BPI stakes. (3) Includes mutual funds (with
SICAVs and managed portfolios), pension plans and life-savings insurance. (4) Approved by the Board for proposal to the AGM, representing a cash payout of 53%. For 2020, the Board has approved to maintain a cap on cash payout of 60%.
Net Income of €1,705M (-14.1% yoy) with RoTE (ttm) at 7.7%
Core revenues grow on increased support from fee and
insurance revenues in 2H
Cost containment facilitates gradual improvement of operating jaws
–expect c.1% cost growth for FY2020
Intense commercial activity reflected in volume growth
Strong balance-sheet metrics significantly reinforced:
steep NPL reduction and CET1 up to 12%
+1.2% FY yoy
+3.9% 4Q yoy
+1.6% FY yoy
3.6% 12.0%
+10.7% 4Q yoy
+2.4% ytd +8.4% ytd
+2.6% qoq+0.3% qoq
15 bps €0.15
+2.9% FY yoy
+0.5% 4Q yoy
-1.1% qoqPERSONNEL
COSTS (RECUR.)
OTHER RECUR.
EXPENSES -1.6% qoq
CORE
REVENUES(1)
FEES + OTHER
INSURANCE
REVENUES(2)
RECURRENT
COSTS
LOAN-BOOK
(Performing)
LONG-
TERM
SAVINGS (3)
NPL ratio, % CET1, %
CoR ttm % DPS(4)
41
Steady market share gains while accelerating rollout of distribution strategy
COMPETITIVE STANCE
Best Bank in Spain
Best Bank for Transformation Western Europe
2019
(1) Including 17 store branches work-in-process as of January 2020. (2) Expected by June 2020. (3) Comparable group: branches with >6 employees in urban areas covered by the Store network. (4) Branches in towns with <10,000 inhabitants and with < 6
employees. (5) BCIV, Barclays Spain, Banco de Valencia, Caixa Girona. (6) Latest available data. Source: Social Security, Bank of Spain, INVERCO, ICEA and Cards and Payments System. (7) Based on data as of December 2019 for mutual funds (CABK AM)
and pension plans and on internal estimates for savings insurance. (8) Evolution ytd adjusted to exclude amortisation of inter-company loan in Dec-18.
Adapting the network to customer expectations ahead of plan
+16%Core revenues/employee
FY19
vs. comparable(3) ~2,000
Employee departures in
early August 2019
AgroBank
# employees/rural branch(4) (Spain)
Consolidating our efficient and
specialised rural network
2.8
2.4
Dec-18 Dec-19
-15%
~81%% of rural branches(4) with ≤ 3
employees (Spain)
Store Branches
14
72
160
283
475(1)
2015 2016 2017 2018 2019 2020 2021
>600>600(2)
# of Store branches (end of period)
Transforming branches into advisory
hubs ahead of schedule
5.0
4.94.7
4.4
3.9
<3.6
2015 2016 2017 2018 2019 2020 2021
<3.6
Retail branches
-49%2019-2008 PF acquisitions(5)
Accelerating right-sizing of the retail
branch network
# retail branches in Spain (thousands, end of period)
Growing market shares across the boardMarket share by key products (Spain)(6)
22.5%
28.1%
25.5%
15.1%
27.1% +27
+141
+129
+70
+38
23.5% +14
Long-term
savings(7)
Life
insurance
Pension
plans
Business
lending(8)
Payrolls
Credit card
turnover
+8719.4%Life + Non-
life insurance
Market share (%) YTD (bps)
42
ACTIVITY & RESULTS
Structural growth of long-term saving volumes continues
31 Dec 2019 % ytd % qoq
I. On-balance-sheet funds 277.3 6.4 0.4
Demand deposits 189.6 8.8 0.7
Time deposits (1) 29.0 (5.7) (4.7)
Insurance(2) 57.4 7.5 2.4
o/w unit linked 12.2 35.3 10.2
Other funds 1.3 (37.2) (11.2)
II. Assets under management(3) 102.3 8.9 2.6
Mutual funds (4) 68.6 6.3 2.2
Pension plans 33.7 14.7 3.7
III. Other managed resources 4.7 (8.0) (26.6)
Total customer funds 384.3 6.9 0.5
+14.1
+24.7
(1.7) +3.2
+9.2
Demanddeposits& other
Timedeposits
L/t savingnet inflows(ex market)
Market Total(1) (5)
(6)
Strong growth ytd
Customer funds, ytd in €Bn Customer funds, ytd (organic) in €Bn
8.4
13.5
9.27.3
11.59.0
24.7
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19
x2.7
• Strong customer fund growth (+6.9% ytd) underpinned by intense commercial activity
• On-B/S funds up 6.4% ytd with solid contribution from life-insurance business
• Net inflows and market fuel growth in off-B/S AuMs (+8.9% ytd/+2.6% qoq)
(1) Includes retail debt securities amounting to €1,625M at 31 December 2019. (2) Evolution ytd and qoq based on restated Sep.19 and Dec.18 figures to reflect a change in accounting treatment of pension liabilities. (3) Off-balance-sheet AuM. Excluding unit
linked which are on-balance-sheet funds. (4) Including SICAVs and managed portfolios. (5) Long-term saving products include mutual funds (with SICAVs and managed portfolios), pension plans, unit linked and other insurance funds. (6) Market impacts in
mutual funds, pension plans and unit linked insurance.
Breakdown, in €Bn
Customer funds
43
ACTIVITY & RESULTS
Another strong quarterly performance in long-term savings and protection after a slow start to the year
(1) Including mutual funds (with managed portfolios and SICAVs), pension plans and life-savings insurance. (2) Based on data as of December 2019 for mutual funds (CABK AM) and pension plans and on internal estimates for savings insurance. Sources:
INVERCO, ICEA, latest available data. (3) 1Q-3Q data restated to reflect change in accounting criteria affecting savings insurance. (4) Life-risk: launched in April 2019. Health: launched in June 2019. (5) Includes policies related to mortgages. (6) Includes
micro-insurance (pets, etc.) and civil responsibility insurance.
Long-term savings(1): Reinforced leadership with net inflows accelerating in 4Q19
+70 bps ytd
22.5%
New contracts since launch in Mar-19 until YE2019
~323,000
Breakdown, by type of product
Protection insurance: Reinvigorating our offering to create long-term relational value
37.3%
Home
12.4%
Auto
Life-risk (4)
42.1%
8.2%
Health (4)
Life-risk(5)
Home and other(6)
Health
Auto
21%
11%
7%
3% +5 bps
+9 bps
+44 bps
+18 bps
Seizing opportunities within our client base% of CABK ex BPI individual clients that own a CABK protection insurance product (YE19) and ytd in bps
Supported by unique advisory model
YE14 PF
33% +9 pp
YE19
42%
+58 bpsytd
L/t savings as % of total customer funds
333 223
667
1,982
1Q19 2Q19 3Q19 4Q19
1H19: €556M 2H19: €2,649Mx5
New contracts in 4Q19: +43% qoq
Long-term savingsL/t saving net inflows (ex market)(3), in €M
Market share (Spain)(2)
~18,075employees certified in
advisory
44
31 Dec 2019 % ytd % qoq
I. Loans to individuals 124.3 (2.1) (0.7)
Residential mortgages 88.5 (3.5) (1.1)
Other loans to individuals 35.9 1.3 0.2
o/w consumer loans (1) 14.7 13.8 1.9
II. Loans to businesses 91.3 6.4 1.7
Corporates and SMEs 85.2 7.2 2.0
Real Estate developers 6.1 (3.8) (1.3)
Loans to individuals & businesses 215.6 1.3 0.3
III. Public sector 11.8 (0.6) (8.9)
Total loans 227.4 1.2 (0.2)
Performing loans 219.0 2.4 0.3
Performing loan book ytd, in €Bn
214.0
219.0
(2.7) 1.7(1.1)
7.2
(0.1)
Dec-18 Mortgages Consumer Individuals -other
Businesses Public sector Dec-19
• Loan growth underpinned by performing book +2.4% ytd (+0.3% qoq)…
• ... with support from consumer and business lending…
• … offset by structural deleveraging in mortgages and tactical approach to public sector
+2.4%
Growing the loan book while improving mix
ACTIVITY & RESULTS
Loan-book grows with Q4 trends in line with previous quarters
Breakdown, in €Bn
Loan book
(1) Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CABK, BPI, MicroBank and CABK Payments & Consumer, as well as revolving credit card balances (CaixaBank Payments & Consumer) excluding float.
45
ACTIVITY & RESULTS
Drivers identified in 2019-21 Strategic Plan are effectively contributing to revenue growth
Group core revenues, in €M
Core revenues bounce back in 2H
(1) Life-risk insurance premia, non-life insurance distribution fees and equity accounted income from SegurCaixa Adeslas and other BPI stakes.Impacted by adverse backdropFully-firing in 2H19
4,0914,126
4,084
4,232
1H18 2H18 1H19 2H19
FY18: €8,217M FY19: €8,316M
+1.2%
Another growth year despite the challenging rates environment
Contribution to FY19 Group
core revenues, in %
BPI
Business lending
Payments
Consumer lending
Long-term savings
Protection
Other
Mortgages
+6.4% ytd
Loans to businesses
+13.8% ytd
Consumer loans
-3.5% ytd
Residential mortgages
+8.4% ytd
AuM + savings insurance
+17.5% yoy
Protection revenues(1), 4Q19
+9% yoy
POS terminal turnover, FY19
+4.4% ytd / +8.1% ytd
Loan-book / Off-balance sheet AuMs
~ €12 Bn
ECB cash balances, eop (-c.€5Bn qoq)
~ 75%
~25%
46
ACTIVITY & RESULTS
Higher quality of revenues and core revenue growthFY19 FY18 % YoY
Net interest income 4,951 4,907 0.9
Net fees and commissions 2,598 2,583 0.6
Other core revenues (1) 767 727 5.5
Income from investments (ex SCA) 377 796 (52.6)
Trading income 298 278 7.2
Other income & expenses (386) (524) (26.4)
Gross income 8,605 8,767 (1.8)
Recurring expenses (4,771) (4,634) 2.9
Extraordinary expenses (979) (24)
Pre-impairment income 2,855 4,109 (30.5)
LLPs (376) (97)
Other provisions + gains/losses on disposals (402) (1,205) (66.7)
Pre-tax income 2,077 2,807 (26.0)
Income tax, minorities & other (2) (372) (822) (54.8)
Profit attributable to the Group 1,705 1,985 (14.1)
Profit ex restructuring, % YoY 20.4
Core revenues (quarterly figures), in €M Core revenues as % of gross income
2,115
4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19
94%
97%
FY-18
FY-19
+1.2% FY/FY
FY19
HighlightsHigher quality of revenues
with core revenue growth
Significant decline in
RE related charges
Front-loading of
cost-savings
Cost-of-risk remains
at low levels
Higher profitability ex
restructuring charges
10.8%RoTE adj.(3)
(1) Including life-risk premia, equity accounted income from SegurCaixaAdeslas and other BPI insurance stakes. (2) FY18 includes -€55M from discontinued operations related to ServiHabitat contribution to consolidated earnings from its acquisition in July
2018 until closing of the real estate business disposal in December 2018. (3) Trailing 12M, including AT1 coupon and excluding 2Q19 restructuring charges (€685M post-tax). RoTE TTM non-adjusted: 7.7%.
€M
Consolidated Income Statement
Core revenues support improvement in recurrent profitability
47
ACTIVITY & RESULTS
Contribution from BPI segment increases significantly
FY19 % FY yoy
Net interest income 416 4.7
Net fees and commissions (2) 258 -8.0/+5.7 adj. (2)
Other revenues 28 0.0
Gross income 702 (0.4)
Recurring operating expenses (463) 3.2
Extraordinary operating expenses (1) (93.8)
Pre-impairment income 238 2.6
Impairment losses & other provisions 200 88.7
Gains/losses on disposals and other 2 (96.1)
Pre-tax income 440 13.1
Income tax, minority interest & other(3) (108) (15.0)
Net attributable profit 332 26.7
Positive operating trends continued throughout the year
Successfully consolidating our project in Portugal
Most Trusted
Bank Brand in
Portugal 2019
Loans +4.4%
BPI - Activity (stock ytd, as reported by BPI) and market shares in Portugal
Consumer
lending(4)
Credit to
businesses
Savings
insurance
+15.9%
+4.7%
+10.8%
10.2%Market share(5)
14.0%Market share(6)
10.2%Market share(5)
16.0%Market share(7)
Life -riskTo be retained
during 1Q-2020
• Commercial dynamism drives revenues
and market shares
• Reinforced digital offering: #1 in digital
client penetration(8)
• 1st Bank in Portugal by asset quality(9)
with further NPL reduction in Q4
Best large bank
Portugal
2020
Best large
bank Portugal
2020
(1) Excludes contribution from BPI stakes, which is assigned to the “Investments” business segment. NII excludes cost from funding BFA and BCI which is included in ”Investments” segment. (2) Change yoy impacted by change in scope from sale of product
factories (-€36M FY yoy). (3) Note that the % attributed increased to 100% since December 2018. (4) Consumer lending and other credit to individuals. (5) Latest available data (Oct-19); Source: BPI and Bank of Portugal. (6) Market share in new production
of personal lending (latest available data: trailing Jan-Nov 2019). (7) Latest available data (Nov-19); excludes retirement savings plan. Source: APS. (8) In Individuals; Source: BASEF (Dec.2019, trailing 12 months), main banks. (9) NPE ratios based on EBA
criteria as of Sep-19 (Peers: Millenium BCP, Totta, Caixa Geral, Montepio).
Profits supported by core revenue growth and write-backsBPI Segment P&L(1): €M
48
ACTIVITY & RESULTS
Q4 shows marked improvement in recurrent profitabilityConsolidated Income Statement€M
CoR BROADLY STABLE AT LOW LEVELS
4Q19 4Q18 % yoy % qoq
Net interest income 1,231 1,236 (0.4) (0.9)
Net fees and commissions 694 645 7.5 5.7
Income and expense insurance/reinsurance 149 132 13.1 4.3
Trading 13 (45) (50.7)
Dividends 2 24 (93.7)
Equity accounted 81 101 (18.9) (39.3)
Other operating income/expenses (175) (227) (23.1)
Gross income 1,995 1,866 6.9 (7.9)
Recurring operating expenses (1,174) (1,168) 0.5 (1.3)
Extraordinary operating expenses (1) (13) (92.0)
Pre-impairment income 820 685 19.8 (16.0)
Pre-impairment income ex extraord. exp. 821 698 17.6 (15.9)
LLPs (88) (47) 87.1 4.8
Other provisions (84) (143) (41.5) 37.9
Gains/losses on disposals and other (85) (258) (67.2) 91.5
Pre-tax income 563 237 (28.5)
Tax, minority & other (124) (20) (13.7)
Net income 439 217 (31.8)
Pro memoria
Core revenues 2,115 2,034 3.9 (0.1)
CORE REVENUE GROWTH UNDERPINNED BY FEES AND INSURANCE
Core revenues +3.9% yoy driving gross income growth:
• NII broadly stable yoy despite negative index resets and ALCO attrition
• Strong fee growth on the back of AM and banking fees
• Double-digit growth in life-risk insurance revenues
• Core revenues qoq mostly reflect lower NII and adverse seasonality in SCA
Non-core revenues mostly reflect changes in scope yoy with quarterly evolution
impacted by one-offs and seasonal items (including DGF charge)
COST-SAVINGS FROM RESTRUCTURING IMPACT THE FULL QUARTER
CoR ttm at 15 bps, broadly stable qoq and in line with FY guidance (<20 bps)
Other charges(1) reflect one-offs and conservative YE provisioning; yet down 58.1% yoy
(1) “Other provisions” plus “Gains/losses on disposals and other”.
49
ACTIVITY & RESULTS
FY NII up c.1% with quarterly evolution impacted by index resets and ALCO maturities
NII evolution€M
CABK
BPI
FY19 Group €4,951M +0.9% yoy
-0.4%
-0.9%
qoq, in €M
1,242
1,2310
(11)
3Q19 4Q19
-0.9%
Positive contribution from:
• Lower funding costs
• Tiering (2 months)
• Partial TLTRO rollover
Offset by:
• Negative Euribor resets on loans
• Lower average loan volumes
• Reduced average ALCO
volumes and yields
Tiering provides partial offset for lower rates and ALCO
Wholesale
funding,
ALCO &
other
Client NII (1)
NII bridge
1,108 1,131 1,139 1,138 1,139 1,141 1,135 1,124
95 98 100 98 98 100 107 107
1,203 1,229 1,239 1,236 1,237 1,241 1,242 1,231
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
(1) Including NII from life-savings insurance.
50
ACTIVITY & RESULTS
A broadly stable customer spread shows resilience to lower loan yields
Loan yields:
o FB qoq mainly reflect lower
Euribor
o BB qoq mostly reflects lower
Euribor resets
Customer spread broadly stable
as funding and loan yield
evolution offset each other
NIM at 120 bps -1 bp vs 3Q
Customer spreadIn %
Customer spread
Net loans
Client funds
2.24 2.23 2.22 2.23 2.27 2.22 2.20 2.19
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
0.04 0.04 0.04 0.04 0.02 0.03 0.03 0.02
2.28 2.27 2.26 2.27 2.29 2.25 2.23 2.21
-1 bp
(2)
Loan yields
228 227 226 227 229225 223 221
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
324
262 267 268287 280
257 252
Front book CABK ex BPI and Group back book yield(1) (bps)
-2 bps
BBFB
(1) Front book yields are compiled from long term lending production data (loans and revolving credit facilities, including those that are syndicated) of CaixaBank,S.A. and MicroBank; excluding public sector. Back book includes all segments. (2) Client
funds back book yield includes all retail funding costs.
51
ACTIVITY & RESULTS
Maturity profile of ALCO assets and wholesale liabilities support yield in the medium term
(1) Banking book fixed-income securities portfolio and liquidity management portfolio, excluding trading book assets. (2) Securities at amortised cost. (3) Includes securitisations placed with investors and self-retained multi-issuer covered bonds. It does not
include the AT1 issued in June 2017 and in March 2018. The SP issued in January 2020 is not included either. (4) Additionally, in 1Q19, BPI issued €0.5Bn Covered Bond at MS +25 bps.
Wholesale funding spreads broadly stable in
the quarterLower ALCO book mostly reflecting 4Q maturities
5.6
8.2
9.2
1.3 2.00.5
5.4
2020 2021 2022 2023 2024 2025 2025+
Total ALCO(1), Group end of period in €Bn
17.822.7
17.4 17.5 15.8
16.3
16.4
16.3 16.3 16.3
34.1
39.1
33.7 33.8 32.2
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
FV-OCI AC
ALCO(1) maturity profile, Group as of 31 December 2019 in €Bn
(2)
Yield, %
Duration, yrs
Average life, yrs
ALCO book breakdown by main sovereign exposure, in % of total as of 31
December 2019
75% 9% 4% 3%
Avg. yield:
0.3%
Avg. yield:
1.8%
3.13.2 3.6 3.1
0.91.0 1.0 0.9
2.52.5 3.0 2.4
3.3
0.7
2.6
28.3 30.6 29.9 30.9 30.8
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
112 116123 124 123
Volume
Spread
CABK ex BPI wholesale funding back-book(3) volumes in €Bn and spread over
6M Euribor in bps, as of 31 December 2019
2019 market
issuanceCABK ex BPI(4)
€4.9BnEuribor 6M
+134 bps
Average cost
Jan-2020: €1Bn 5y SP issuance MS +58 bps
52
ACTIVITY & RESULTS
Fees rebound in 2H with growing support from AM and banking fees
Net fee evolutionIn €M
550599 581 573 552 569 590
629
7569
64 7260 67
6665625
668645 645
612636 656
694
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
CABK
BPI (1)
FY19Group
€2,598M +0.6% yoy
Fee breakdown by main category, 4Q19 in €M and %
Recurrent
Banking & other
Asset
Management(2)
% qoq
Insurance
distribution(2)
344
241
52
57Wholesale
banking
% yoy
-0.5%
+7.3%
0.0%
+64.6%
+3.5%
+11.0%
0.0%
+31.6%
107
100101
102
100 99
101
103
106
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 4Q19eop
eop
Average
AuM(3) average balances vs. eop balance at 31 December 2019,
rebased to 100 = avg. 1Q18
• Recurrent banking & other: solid growth yoy with increased support from e-payment fees
• AM: better markets and inflows plus solid unit linked growth complemented by year-end success fees
• Insurance distribution: gradual recovery after a weak 1H19
• Wholesale banking: strong 4Q with higher contribution qoq and yoy
+7.5%
+5.7%
(1) Impacted yoy by changes in scope and reclassifications. (2) Unit linked fees are now included in AM fees (in previous reporting up to 4Q18, they were included in “insurance fees” together with non-life distribution fees). 2018 figures have been restated
accordingly. (3) Including mutual funds, managed portfolios, SICAVs, pension plans and unit linked.
Increased support from AM and banking fees
53
ACTIVITY & RESULTS
Core revenue recovery underpinned by key business engines
Core revenues bounce back in 2H
Core revenues, €Bn
With growing support from key businesses
Group core revenues, in €M
Strong recovery of protection revenues
Protection business revenues(3), in €M
FY18: €954M FY19: €980M
138 144 137 132 130 134 143 149
42 42 71
21 48 4676 41
61 6252
5255 55
5152
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
260
233
270
235
Protection(3)
L/t savings(2)
Payments(4)
Other core(5)
L/T savings,
protection and
payments in % of
total core revenues
+1 pp40%
FY19 yoy
• Recovery yoy underpinned by life-risk recovery and
growing SCA contribution
• QoQ evolution impacted by adverse seasonality in
equity accounted revenues
+17.5%
248241
205
242
+2.6%
Distribution fees
Equity accounted
Life-risk
5,015 5,004
1,096 1,129
954 980
1,152 1,203
8,217 8,316
FY18 FY19
+2.6%
+3.0%
-0.2%
NII Fees Other(1) TOTAL
FY % yoy
4Q % yoy
+0.9%
-0.4%
+0.6%
+7.5%
+5.5%
+24.3%
€2.1Bn
€1.9Bn
4Q14 4Q15 4Q16 4Q17 4Q18 4Q19
Group
CABK (ex BPI)
Group core rev.
+1.2%
+3.9%
+4.4%
+1.2%
(1) Revenues from life-risk insurance and equity accounted income from SegurCaixa Adeslas (SCA) and BPI bancassurance stakes. (2) L/T saving revenues include: AM fees (mutual funds including managed portfolios and SICAVs; pension plans and unit
linked) plus NII from life-savings insurance. (3) Protection revenues include: non-life distribution fees, life-risk premia and equity accounted income from SCA and other bancassurance stakes from BPI. (4) Payment revenues include issuing, acquiring and
ATM fees and other transactional banking fees. Equity accounted income from JV with Comercia is not included in core revenues. (5) Other core revenues include other banking fees (including wholesale banking) and NII other than from life-savings
insurance.
54
ACTIVITY & RESULTS
Recurrent costs fall (qoq) on savings from restructuring and other initiativesFY recurrent costs aligned with revised guidanceRecurrent costs, in €M
Recurrent cost bridge qoq, in €MCABK
1,031 1,043 1,049 1,062 1,089 1,087 1,073 1,059
118 112 113 106 115 117 116 115
1,149 1,155 1,162 1,1681,204 1,204 1,189 1,174
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
BPI+0.5%
-1.3%
FY19Group
€4,771M +2.9% yoy
• Recurrent costs -1.3% qoq on a full quarter of personnel cost-savings and cost initiatives to reduce SG&A
• Core operating income(2) +8.5% in 4Q yoy as core revenue growth exceeds cost inflation
• Core revenue per employee up +7% FY yoy with core C/I ratio TTM at 57.4% (-0.5 pp qoq)
1,1891,174
-8-7
3Q19 4Q19
PersonnelGeneral
expenses & amortisations
-1.3%
100
117125
2014 PF FY18 FY19
Core revenues per employee CABK ex BPI, 2014 PF = 100
+25%
(1)
+7%
Recurrent costs fall in the quarter and improve operating jaws
Cost savings from Q2 restructuring will impact 2020 in full
(1) PF Barclays. (2) Core revenues minus recurrent operating expenses.
55
ACTIVITY & RESULTS
Cost of risk broadly stable at low levels
LLPs
Loan-loss provisions, in €M
CoR broadly stable at low levels
CoR TTM(2), in %
CoR below FY guidance despite significant balance-sheet de-risking
(1) PF excluding an extraordinary write-back in 3Q18 (c.€275M) from updating the recoverable value of a large credit exposure.
(2) Trailing 12M. Excluding one-offs in 4Q16 and extraordinary write-back in 3Q18.
139
109
77
47
123
81 84 88
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
FY18 adj. (1): €372M FY19: €376M
(1)
+1.2%1.00%
0.73%
0.46%
0.34%
0.16%
0.15%
D-14 D-15 D-16 D-17 D-18 D-19
Guidance:
<0.20%
-1 bps
56
ACTIVITY & RESULTS
Steep decline in NPL stock reduces ratio below target
NPL ratio below YE target, with
improvement across all segmentsDeclining NPL inflows Coverage at comfortable levels
NPL inflows, in €M Coverage ratio(4), eop in %NPL stock(1)(2) in €Bn and NPL ratio, in % eop
11.2 11.010.4
10.0
8.8
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
-11.6%
6,502
5,138
3,522
2,924
FY16 FY17 FY18 FY19
-17.0%
Group CABK ex BPI
4Q19
3Q19
55% 53%
54% 50%
54% 50%
CABK ex BPI: NPL/coverage breakdown by collateral, eop
33% 67%
Dec-19
CABK ex BPI
Coverage
94%
Coverage including appraised collateral
109%
Uncollateralised Collateralised
4Q18
OREO exposure non-material
OREO(3) (CABK ex BPI) net of provisions, 31 Dec-2019
€958 M +4.8% qoq 4Q19% yoy
-22.0%
-21.4%
-1.1 pp
4.7% 4.6%4.2% 4.1%
3.6%
(1) Includes non-performing contingent liabilities (€394M in 4Q19, including BPI). (2) Evolution in Q4 includes portfolio sales (c.€450M) and single large recoveries (c.€290M). (3) OREO portfolio available for sale. BPI OREO portfolio net of provisions
amounts to €4M as of 31 December 2019 (versus €17M as of 30 September 2019). Total RE sales in 4Q19 amount to €227M at sale price with 17% capital gain. (4) Ratio between total impairment allowances on loans to customers and contingent liabilities
over non-performing loans and advances to customers and contingent liabilities.
57
ACTIVITY & RESULTS
Significant NPA reduction since peak in 2013
NPL stock on a steady downward trend
Group NPL stock(1), in €Bn
(1) Including non-performing contingent liabilities.
20.2
25.9 25.4
20.1
17.1
14.8 14.3
11.2
8.8
Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19
Peak (Jun-13)-66%
Refin. loans
Net OREO exposure
CABK OREO portfolio available for sale net of provisions, in €Bn
5.1
6.2
6.97.3
6.35.9
0.7 1.0
Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19
Peak (Dec-15)-87%
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19
58
ACTIVITY & RESULTS
Stable and strong liquidity position
High liquidity levels even post partial
TLTRO rollover
Total liquid assets (Group), in €Bn
CABK liquidity metrics
Total liquid assets (CABK ex BPI), in €Bn
Continued and successful market access
Issues January 2017 – January 2020(3), in €Bn
HQLAs
Other assets eligible as ECB collateral
2233
34
5756 55
8089 89
Dec-18 Sep-19 Dec-19
17 1728 28 30
53 6050 52 51
7076 78 80 81
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
4.7
19.7
4.0
5.6
3.2
2.3
CB SP SNP Tier 2 AT1 Totalissued
€5.4 Bn
FY19Issuances(4)
HQLAs
Other assets eligible as ECB collateral
LTDLCR(1) TLTRO II / IIINSFR(2)
100%186% €3.9Bn/€9.0Bn129%
LCR (end of period)
203% 181%
Jan-20New SP issuance
€1 Bn@ Mid-swap
+ 58 bps
(1) 12M average (LCR as of 31 December 2019 stands at 179%). (2) NSFR end of period. Best estimate according to the new CRR criteria (Regulation (EU) 2019/876 of 20 May 2019). (3) Issues by CABK and BPI in Euro equivalent, including private placements. It
includes the SP issuance in January 2020. (4) €4.25Bn by CABK (€1Bn 5yr inaugural Social SNP at MS + 113bps, €1.25Bn 7yr SNP at MS + 145 bps, €1Bn 5yr SNP at MS + 225 bps and €1Bn 7yr SP at MS + 90 bps) and €0.5Bn by BPI (5yr CB at MS + 25 bps).
Additionally, there were six private placements of mortgage covered bonds by CABK for a total of €500M and two private placements of SNP for a total of c.€132M equivalent (€50M + ¥10Bn).
59
ACTIVITY & RESULTS
Strong solvency metrics further reinforced as CET1 reaches 12%Noteworthy improvement in % CET1 with
support from organic generation and
positive one-offs(1)
TBVPS up to €3.49/share Comfortable CET1 buffer (up to 325 bps)
above SREP 2020 with MREL PF already at
2021 requirement
(1) Including change in accounting treatment of pension liabilities with a positive impact of +18 bps qoq. (2) Previously reported figure, not restated to reflect change in accounting treatment of pension liabilities (the restated figure for YE 2018 is
€3.36/share). (3) Includes impact from change in accounting treatment of pension liabilities. (4) Approved by the Board for proposal to the AGM. For FY20 dividend, the Board set a cap of 60% cash payout. (5) CABK CET1 ratio on a solo basis as of 31
December 2019 is 13.8%. BPI CET1 ratio as of 31 December 2019 is 13.4% (13.4% on a solo basis). (6) PF €1Bn SP issuance in January 2020 (21.9% excluding such issuance). Our best estimate according to the current eligibility criteria of the SRB, on a
consolidated basis. (7) Includes 0.03% corresponding to the countercyclical buffer for exposures in countries other than Spain/Portugal. (8) In terms of consolidated risk weighted assets, as of 31 December 2017.
Group CET1 ratio evolution, % and bps
11.5%11.7%
12.0%
+19bps+18 bps
Dec-18 Sep-19 Dec-19
3.30
3.49
+0.29 0.00 -0.10
Dec-18 Dec-19
FY Result
OCI and other(3)
Dividend
+5.8%
Group capital ratios(5) and requirements, % as of 31 December 2019
CET1
In €Bn
RWAs 149.3
17.8
147.8
17.4€0.15/share 53% Payout
2020 CET1
SREP(7)
2021 MREL
requirement(8)8.78% 22.5%
FY19Dividend(4)
Organic capital
generation
Market & other(1)
+37 bps
Group TBVPS evolution, €/share
CET1
Total Capital
Leverage ratio
Tier 1
MREL PF(6)
12.0%
13.5%
15.7%
22.5%
Subordinated MREL 19.6%
5.9%
+52 bps
(2)
60
ACTIVITY & RESULTS
Delivering on revised FY19 guidance in a very challenging environment…
FY2019Guidance FY
Core revenues(1), % yoy
NPL, %
Recurrent expenses(1), % yoy
~1%
Cost of Risk, trailing 12M
~3%
<0.20%
<4%
1.2%
2.9%
0.15%
3.6%
…on the back of diversified revenues, cost management and prudent risk metrics
(1) Guidance revised in 2Q19 webcast.
…on the back of diversified revenues, cost management and prudent risk metrics
61
ACTIVITY & RESULTS
FY2020e Group guidance
A successful business model that will continue to perform in the new rate environment
Recurrent expenses, % yoy
Cost of Risk, TTM
Core revenues, % yoy ~ 1%
~ 1%
<0.30%
FY
2020e
62
Contents
APPENDIX
63
A history that spans over 115 yearsAPPENDIX
1970
is established
1904
1918
Welfare programme
integrated into the
organisation
Building of significant
industrial portfolio
1977
Opportunity to offer
same services as
banks
1988
National
expansion outside
the original region
2000
CaixaHolding created
2007
Internationalisation &
IPO of Criteria Caixa
Corp
2008
Acquisition of Morgan
Stanley Wealth in Spain
2010
Acquisition of
Caixa Girona
Acquisition of
Banca Civica
Acquisition of
Banco de Valencia
Prudential
deconsolidation from
Criteria
CaixaBank
created and listed
2011
2011
-12
Acquisition of
Bankpime
2012
2013
2014
“la Caixa” banking
foundation created
Acquisition of
Barclays2015
2016
Disposal of BEA/GFI
Disposal of
Boursorama
2017 Acquisition of
BPI
Launch of
ImaginBank
15.6Mclients
Full separation from
LCBF board
2018
REP
disposal
100% of BPI acquired
Disposal of RE assets (Lone
Star deal)
2019
64
Organic growth has been reinforced by well-timed acquisitionsAPPENDIX
Proven integration track record
Strict financial discipline for acquisitions
Synergies as % of initial costs Synergies 2016(€M)
Timing(begin/completed)
Initial target Achieved
59% 63% 580 2012/2015
52% 62% 101 2013/2015
45% 57% 189 2015/2016
Effective delivery of synergies exceeding targets and earlier than expected. In €M
0.3x0.0x
0.5x
Attractive P/BV multiples
2008 2010 2011-12 2012-13 2014-15
6 months(1) 4 months(1) 8.5 months(1) 5 months(1)10 months(1) 4.5 months(1)
2016-2017
0.68x
Total synergy target
€122 M By 2020 +
2018
84.5% stake post
tender offer
100%stake
YE 2018 (2)
2017 tender offer
P/TBV
May-Aug 2018
Acquisition of 8.425% stake from Allianz Group + stock market purchases reaching 95% stake
Dec 2018
Post de-listing squeeze out (remaining 5% stake)
(1) Time lapsed from closing, legal merger or acquisition agreement until completion of IT integration. The integration of Banca Civica involved completing 4 sequential integrations.
(2) Post de-listing squeeze out exercised on 27 December 2018.
65
A streamlined organisation of “la Caixa” GroupAPPENDIX
Non-controlled stakes(4)
In June 2014, “la Caixa” became a banking foundation and in October 2014 the legal reorganisation of the Group was completed after segregating assets and liabilities to CriteriaCaixa, including its stake in CaixaBank.
1
3
2
40%(1)
Other Investments(2)
Other (2)
24.4%
1.2%
6.0%
99.5%
20.0%
Welfare program
3
5.2%
9.1% 17.5%
100%
2
1
5.00%
9.92%
Financial subsidiaries
100%
100%
49%
CaixaBank AM
VidaCaixa Group (Insurance) 100%
CaixaBank Payments & Consumer
Comercia Global Payments (PoS payments)
RE activities
Building Center 100% Coral Homes 20%
BPI 100% YE2018 (3)
(1) Since 6 February 2017.
(2) Latest figures reported by CriteriaCaixa as of June 2019. “Other” include, among others, stakes in Aigües de Barcelona, 100% of Caixa Capital Risc and RE business.
(3) Post de-listing squeeze out exercised on 27 December 2018.
(4) Main non-controlled stakes of CaixaBank Group, including BPI’s main non-control stakes of 48.10% of BFA and 35.67% of BCI as of 31 December 2019.
66
Transparency, independence and good governance are key prioritiesAPPENDIX
Increased free float with diversified investor baseNumber of shareholders, in thousands
360
578
2007 2019
Shareholder base by group(1), in % of share capital as of 31 December 2019
44.3% CriteriaCaixa,
treasury stock,
directors and
shareholders
represented in
the BoD
55.7% Free
float(2)33% Retail
67% Institutional
24% US & Canada
17% UK
7% Spain
21% Rest of Europe
12% Asia and RoW
19% Not identified
Free float(2)
Geographical distribution of institutional free
float(3) , % of total shares owned by institutional
investors, Dec-2019
Board of Directors composition(4)
(1) Source: latest available public information and shareholders’ register book. The register book
presents an excess of c.35 M net shares, assumed to be allocated to the international
institutional category.
(2) Calculated as the number of issued shares less treasury stock and shares owned by the
members of the Board of Directors and by the shareholders represented in the Board of
Directors.
(3) Percentage calculated on the institutional free float identified at the Shareholder identification
elaborated by CMi2i.
(4) Includes all the changes agreed at the AGM on the 5th April 2019. Refer to Significant Event
number 276874 (CNMV) for additional information.
(5) Including 1 director from Banking Foundation of Caja Navarra, Banking Foundation of Caja
Canarias and Banking Foundation of Caja de Burgos and 1 director from Mutua Madrileña.
(6) On 22 June 2017, the Board of Directors appointed a Lead Independent Director.
8Proprietary
directors(5)
1 Executive
director
7Independent
directors(6)
• Control and management of the bank is shared
by the AGM, Board of Directors and Board
committees: Audit and control; Executive;
Appointments; Remuneration; Risks. The majority
shareholder is not overrepresented in the board
• CABK’s relationship with other Group entities
is immaterial, performed on an arm’s length basis
and governed by the Internal Relations Protocol
67
FY19 P&LAPPENDIX
FY19 FY18 % yoy FY19 CABK % yoy FY19 BPI % yoy
Net interest income 4,951 4,907 0.9 4,539 0.5 412 5.5
Net fees and commissions 2,598 2,583 0.6 2,340 1.6 258 (8.0)
Dividends and equity accounted 588 972 (39.5) 501 (28.6) 87 (67.7)
Trading income 298 278 7.2 289 69.3 9
Income and exp. from insurance 556 551 1.0 556 1.0
Other operating income & expenses (386) (524) (26.4) (369) (25.8) (17) (37.4)
Gross income 8,605 8,767 (1.8) 7,856 1.4 749 (26.7)
Recurring operating expenses (4,771) (4,634) 2.9 (4,308) 2.9 (463) 3.2
Extraordinary operating expenses (979) (24) (978) (1) (93.8)
Pre-impairment income 2,855 4,109 (30.5) 2,570 (27.8) 285 (48.2)
LLPs (376) (97) (573) 197 92.7
Other provisions (235) (470) (50.1) (238) (49.9) 3 (27.0)
Gains/losses on disposals and other (167) (735) (77.3) (169) (73.1) 2
Pre-tax income 2,077 2,807 (26.0) 1,590 (29.5) 487 (11.7)
Income tax (369) (712) (48.2) (309) (47.9) (60) (49.4)
Profit for the period 1,708 2,095 (18.5) 1,281 (22.9) 427 (1.4)
Minority interests & other 3 110 (97.3) 3 (94.8)
Net income 1,705 1,985 (14.1) 1,278 (20.3) 427 12.4
Consolidated Income Statement Income statement by perimeter (CABK/BPI)In €M In €M
68
Segment reporting: additional informationAPPENDIX
Income statement by segment
4Q19 % qoq % yoy 4Q19 % qoq % yoy 4Q19 % qoq % yoy
Net interest income 1,149 (0.9) (1.7) (26) (18.8) 108 0.4 9.1
Net fees and commissions 629 6.3 9.7 65 0.0 (10.0)
Dividends and equity accounted 44 (45.7) 18.9 33 (34.0) (65.3) 6 50.0
Trading income 14 (30.0) (11) 10 25.0 66.7
Income and exp. from insurance 149 4.3 13.1
Other operating income & expenses (176) (22.4) 1 47.8
Gross income 1,809 (7.7) 10.8 (4) 190 2.2 11.8
Recurring operating expenses (1,058) (1.3) (0.3) (1) (115) (0.9) 8.4
Extraordinary operating expenses (1)
Pre-impairment income 751 (15.3) 31.5 (5) 74 5.7 45.1
LLPs (221) 63.8 133 51.4
Other provisions (87) 42.0 (41.1) 3
Gains/losses on disposals & other (84) (13.7) (1)
Pre-tax income 359 (46.7) (5) 209 53.7
Income tax (85) (52.5) 11 (49) 25.6
Minority interest & others (1) (50.0)
Net income 273 (44.5) 6 160 70.2
Bancassurance Investments BPI (1)
In €M
(1) BPI Segment P&L excludes contribution from BPI minority stakes, which is assigned to the “Investments” business segment. Note that evolution yoy is impacted by changes in scope related to the sale of businesses in 2018. Moreover, the %
attributed from BPI has increased to 100% since Dec-2018.
69
Bancassurance P&L: contribution from insuranceAPPENDIX
Bancassurance P&L 4Q19: contribution from insuranceIn €M
(1) VidaCaixa P&L prior to consolidation. Does not include the fees paid by SegurCaixa Adeslas to the bancassurance business for non-life insurance distribution.
Insurance
% qoq
Net interest income 1,149 78 (5.2)
Net fees and commissions 629 (7) (63.1)
Income and exp. insurance 149 149 4.3
Income from associates 44 38 (46.4)
Other revenues (162) 77
Gross income 1,809 335 21.7
Recurring operating expenses (1,058) (30) (3.0)
Extraordinary operating expenses
Pre-impairment income 751 305 24.8
LLPs & other provisions (308)
Gains/losses on disposals & other (84)
Pre-tax income 359 305 24.8
Income tax & minority interest (86) (56) 15.2
Net income 273 249 27.2
Bancassurance o/w Insurance(1)
70
CaixaBank standalone: additional information (I/II)APPENDIX
In €M
Fee breakdown by main category: 4Q19Income Statement: 4Q19
Insurance distribution (2)
% yoy % qoq
Recurrent Banking & other
AM (2)
304
228
40
57Wholesale banking
+3.3%
+12.3%
+2.1%
+53.9%
-1.0%
+7.3%
+5.3%
+65.4%
4Q19 % yoy % qoq
Net interest income 1,124 (1.3) (1.0)
Net fees and commissions 629 9.7 6.3
Income and exp. from insurance(1) 149 13.1 4.3
Trading 14 (35.2)
Dividends 1 (97.7)
Equity accounted 72 (4.3) (41.2)
Other operating income/expenses (176) (22.4)
Gross income 1,813 8.9 (8.4)
Recurring operating expenses (1,059) (0.3) (1.3)
Extraordinary operating expenses
Pre-impairment income 754 25.1 (16.7)
LLPs (221) 63.8
Other provisions (87) (41.1) 42.0
Gains/losses on disposals and other (84) (13.7) 91.5
Pre-tax income 362 61.9 (47.6)
Tax, minority & other (76) (56.6)
Net income 286 22.1 (44.5)
In €M
(1) Equity accounted income from SegurCaixa Adeslas (which are part of core revenues) are included in “Dividends and equity accounted”.
(2) Note that unit linked fees are now included in AM fees (in previous reporting up to 4Q18, they were included in “insurance fees” together with non-life distribution fees). 2018 figures have been restated accordingly.
71
CaixaBank standalone: additional information (II/II)APPENDIX
Customer fundsBreakdown, in €Bn
Loan book Breakdown, in €Bn
31-Dec-19 % ytd % qoq
I. On-balance-sheet funds 249.9 6.4 0.2
Demand deposits 175.1 8.5 0.5
Time deposits 20.6 (6.7) (6.5)
Insurance 52.9 7.2 2.4
o/w: Unit Linked 9.6 42.4 12.0
Other funds 1.3 (37.5) (11.3)
II. Assets under management 93.8 9.3 2.6
Mutual funds 63.2 6.6 2.0
Pension plans 30.6 15.2 4.0
III. Other managed resources 3.1 (0.9) (33.8)
Total customer funds 346.8 7.1 0.4
31-Dec-19 % ytd % qoq
I. Loans to individuals 111.3 (2.7) (1.0)
Residential mortgages 77.1 (4.2) (1.5)
Other loans to individuals 34.2 0.8 0.1
o/w: consumer loans(1) 13.4 13.2 1.6
II. Loans to businesses 81.8 6.5 1.8
Corporates and SMEs 76.0 7.5 2.1
Real Estate developers 5.9 (4.4) (1.6)
Loans to individuals & businesses 193.1 1.0 0.2
III. Public sector 10.0 (2.3) (10.4)
Total loans 203.1 0.8 (0.4)
Performing loans 195.4 2.0 (0.0)
(1) Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CaixaBank, MicroBank and CaixaBank Payments & Consumer, as well as revolving credit card balances (CaixaBank Payments & Consumer) excluding float.
72
Wholesale fundingAPPENDIX
1.6
2.8
1.6
2020 2021 2022
CABK ex BPI spread over 6M Euribor in bps, as of 31 December 2019
185 143 93
Maturities in €Bn(1), as of 31 December 2019
CABK (ex BPI) wholesale funding maturities€Bn
Issues in 2019(2)
CABK ex BPI
SNP 5yr €1Bn MS + 225 bps
SP 7 yr €1Bn MS + 90 bps
SNP 7yr €1.25Bn MS + 145 bps
SNP 5yr – Social Bond €1Bn MS + 113 bps
1Q
2Q
3Q
BPI(3)
Covered bond 5yr €500M MS +25 bps1Q
Private placements (CABK ex BPI):
• 6 mortgage covered bonds for a total of €500M
• 2 SNP for a total of c.€132M equivalent (€50M +
¥10Bn).
(1) Legal maturities. This figure depicts the impact of wholesale issuances in funding costs of the CaixaBank Banking Book. Wholesale funding figures in the Quarterly Financial Report reflect the Group’s funding needs and as such do not
include ABS securities and self-retained multi-issuer covered bonds, and include AT1 issuances.
(2) Issuances by CABK and BPI in Euro equivalent, including private placements.
(3) Additionally, BPI issued €275M in AT1, which was totally subscribed by CABK.
73
Refinanced loans and classification by stages of gross lending and provisions
APPENDIX
(1) Including self-employed.
Refinanced loans Classification by stages of gross lending and provisionsAs of 31 December 2019, €Bn As of 31 December 2019, €M
Stage 1 Stage 2 Stage 3 TOTAL
Loans and advances 203,451 15,555 8,400 227,406
Contingent Liabilities 15,807 655 394 16,856
Total loans and advances and
contingent liabilities219,258 16,210 8,794 244,262
Loan book exposure
Stage 1 Stage 2 Stage 3 TOTAL
Loans and advances 567 708 3,429 4,704
Contingent Liabilities 19 12 128 159
Total loans and advances and
contingent liabilities586 720 3,557 4,863
Provision
Total O/W NPLs
Individuals(1) 5.0 3.2
Businesses (ex-RE) 2.6 1.4
RE developers 0.7 0.3
Public Sector 0.2 0.0
Total 8.5 4.9
Provisions 1.9 1.7
74
Credit ratings
APPENDIX
Baa1
BBB+
BBB+
P-2
A-2
F2
stable
stable
Long term Short term Outlook
stable
A R-1 (low) stable
(2)
(1)
(3)
(4)
AAA
Rating of covered
bond program
Aa1
AA
-
(6)
(5)
(7)
(1) As of 17 May 2019
(2) As of 31 May 2019
(3) As of 27 September 2019
(4) As of 29 March 2019
(5) As of 17 April 2018
(6) As of 19 March 2019
(7) As of 15 January 2020
75
Balance sheet and P&L
APPENDIX
Balance sheetP&L
(1) With regard to compensating the trading derivatives held via clearing houses LCH and EUREX, the compensation criteria
established in IAS 32 have been met since 31 December 2019. This compensation has impacted in the following
headings: “Financial assets held for trading”, “Financial assets at amortised cost - Customers”, “Financial liabilities held for
trading” and “Financial liabilities at amortised cost – Other financial liabilities” for approximately €-4.2, €-2.4, €-8.0 and
€+1.4 million, respectively.
(2) In accordance with the Amendments to IFRS 4, the Group has decided to apply temporary exemption from IFRS 9 in
respect of the financial investments of the Group’s insurance firms for all periods that come before 1 January 2021 as it
awaits the entry into force of the new IFRS 17: Insurance Contracts, which will govern the presentation and measurement
of insurance contracts (including technical provisions). Accordingly, these investments are grouped under “Assets under
the insurance business” on the balance sheet. To make the information more readily comparable, the Group has also
grouped together the technical provisions relating to Unit Link and Flexible Investment Annuity (part under
management), which are now reported jointly under ‘Liabilities under the insurance business’.
(3) The actuarial losses and gains previously recognised under the heading Shareholders' equity are shown under the heading
'Accumulated Other Comprehensive Income'. As a result of the change of accounting criterion, the equity figures
corresponding to 31 December 2018 have been restated for comparison purposes, reclassifying €548 million under both
headings, without any impact on total equity.
76
Glossary (I/V)
APPENDIX
In addition to the financial information prepared in accordance with International Financial Reporting Standards (IFRS), this document includes certain Alternative Performance Measures (APMs) as defined in the guidelines on
Alternative Performance Measures issued by the European Securities and Markets Authority on 30 June 2015 (ESMA/2015/1057) (the “ESMA Guidelines”). CaixaBank uses certain APMs, which have not been audited, for a better
understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under IFRS. Moreover, the way the Group defines and calculates
these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. ESMA guidelines define an APM as a financial measure of historical or future performance, financial
position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. In accordance with these guidelines, following is a list of the APMs used, along with a reconciliation between
certain management indicators and the indicators presented in the consolidated financial statements prepared under IFRS.
Term Definition
AC Amortised cost.
ALCO Asset – Liability Committee.
AT1 Additional Tier 1: capital instruments that are continuous (no fixed maturity), including preferred shares and high contingent convertible securities.
ATM Automated teller machine.
AuM / AM Assets under Management, include mutual funds (with SICAVs and managed portfolios), pension plans and unit linked.
B/S Balance sheet.
CB Covered bonds.
CET1 Common Equity Tier 1.
Consumer loans Unsecured loans to individuals, excluding those for home purchases. Includes personal loans from CaixaBank, BPI, MicroBank and CaixaBank Payments & Consumer, as well as revolving credit card
balances (CaixaBank Payments & Consumer) excluding float.
CoR Cost of risk: total allowances for insolvency risk (12 months) divided by average lending, gross, plus contingent liabilities, using management criteria.
Core C/I ratio Core cost-to-income ratio: operating expenses (administrative expenses, depreciation and amortisation) stripping out extraordinary expenses divided by core revenues for the last 12 months.
Core operating income Core revenues minus recurrent operating expenses.
Core revenues Group: Sum of NII, Fees and other revenues from insurance (life-risk premia, equity accounted income from SegurCaixa Adeslas and other bancassurance stakes of BPI). CABK ex BPI: Sum of NII, Fees and
other revenues from insurance (life-risk premia and equity accounted income from SegurCaixa Adeslas).
CRR Capital requirements regulation.
Customer spread Difference between:
• Average rate of return on loans (annualised income for the quarter from loans and advances divided by the net average balance of loans and advances for the quarter); and
• Average rate for retail deposits (annualised quarterly cost of retail deposits divided by the average balance of those same retail deposits for the quarter, excluding subordinated liabilities).
77
Glossary (II/V)
APPENDIX
Term Definition
DGF Deposit Guarantee Fund.
DPS Dividend per share.
eop End of period.
FB / BB Front book / back book referring to the yield on loans and the cost of retail deposits (%).
FV - OCI Fair Value in Other Comprehensive Income.
Gains/losses on
disposals & others
Gains/losses on derecognition of assets and others. Includes the following line items:
• Impairment/(reversal) of impairment on investments in joint ventures or associates;
• Impairment/(reversal) of impairment on non-financial assets;
• Gains/(losses) on derecognition of non-financial assets and investments, net;
• Negative goodwill recognised in profit or loss;
• Profit/(loss) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations, net.
HQLA High quality liquid assets within the meaning of Commission Delegated Regulation of 10 October 2014.
Income and expenses
from insurance
Margin obtained from the difference between premia and claims on life-risk products.
LCR Liquidity coverage ratio: High quality liquid asset amount (HQLA) / Total net cash outflow amount.
LLP / LLC Loan-loss provisions / charges, also loan impairment losses.
(Loan) Impairment
losses and other
provisions
Allowances for insolvency risk and charges to provisions. Includes the following line items:
• Impairment/(reversal) of impairment losses on financial assets not measured at fair value through profit or loss and net gains/(losses) on adjustments.
• Provisions/(reversal) of provisions.
of which: Allowances for insolvency risk.
• Impairment/(reversal) of impairment losses on financial assets not measured at fair value through profit or loss corresponding to Loans and advances to customers, using management criteria.
• Provisions/(reversal) of provisions corresponding to Provisions for contingent liabilities, using management criteria.
of which: Other charges to provisions.
• Impairment/(reversal) of impairment losses on financial assets not measured at fair value through profit or loss, excluding balances corresponding to Loans and advances to customers, using management
criteria.
• Provisions/(reversal) of provisions, excluding provisions corresponding to contingent liabilities using management criteria.
78
Glossary (III/V)
APPENDIX
Term Definition
LtD Loan to deposits: quotient between:
• Net loans and advances to customers using management criteria excluding brokered loans (funded by public institutions);
• Customer deposits on the balance sheet.
L/t savings Long term savings: also referred to as AuM and insurance funds, include mutual funds (with SICAVs and managed portfolios), pension plans, unit linked and other insurance funds.
Minority interests & other Profit/(loss) attributable to minority interests and others. Includes the following line items:
• Profit/(loss) for the period attributable to minority interests (non-controlling interests);
• Profit/(loss) after tax from discontinued operations.
MREL Minimum Requirement for own funds and Eligible Liabilities to absorb losses, includes instruments eligible for total capital, senior debt non-preferred, senior debt preferred and other instruments ranking
pari-passu with the latter, at Single Resolution Board’s criteria.
MS Mid-swap: reference index for fixed-rate issues.
Mutual funds Includes own and third-party funds, SICAVs and managed portfolios.
Net fees and
commissions
Net fee and commission income. Includes the following line items:
• Fee and commission income;
• Fee and commission expenses.
NII Net interest income.
NIM Net interest margin, also Balance sheet spread, difference between:
• Average rate of return on assets (annualised interest income for the quarter divided by total average assets for the quarter); and
• Average cost of funds (annualised interest expenses for the quarter divided by total average funds for the quarter).
Non-core revenues Includes trading, dividends, equity accounted income (except Segurcaixa Adelas and other bancassurance BPI stakes) and other operating income/expenses.
NPE ratio Non-performing exposure ratio defined by the European Bank Authority.
NPL coverage ratio Quotient between:
• Total credit loss provisions for loans to customers and contingent liabilities, using management criteria;
• Non-performing loans and advances to customers and contingent liabilities, using management criteria.
NPL ratio Non-performing loan ratio: quotient between:
• Non-performing loans and advances to customers and contingent liabilities, using management criteria;
• Total gross loans to customers and contingent liabilities, using management criteria.
79
Glossary (IV/V)
APPENDIX
Term Definition
NPL stock / NPLs Non-performing loans including non-performing contingent liabilities.
NSFR Net stable funding ratio.
Operating expenses Include the following line items:
• Administrative expenses;
• Depreciation and amortization.
OREO Other Real Estate Owned: repossessed real estate assets available for sale.
OCI Other comprehensive income.
Other core revenues (ex
NII and fees)
Life-risk insurance premia, equity accounted income from SegurCaixa Adeslas and other BPI bancassurance stakes.
Other insurance revenues Life-risk insurance premia, equity accounted income from SegurCaixa Adeslas and other BPI bancassurance stakes.
P&L Profit and Loss Account.
PF Proforma.
POS terminal Point of sale terminal.
Pre-impairment income (+) Gross income;
(-) Operating expenses
RE Real estate.
ROTE Return on tangible equity trailing 12 months, quotient between:
• Profit attributable to the Group trailing 12 months (adjusted by the amount of the Additional Tier 1 coupon reported in equity); and
• 12-month average shareholder equity (including valuation adjustments) deducting intangible assets using management criteria (calculated as the value of intangible assets in the public balance sheet,
plus the intangible assets and goodwill associated with investees, net of provisions, recognised in Investments in joint ventures and associates in the public balance sheet).
RWAs Risk Weighted Assets.
SCA SegurCaixa Adeslas.
SG&A Selling, general & administrative expenses.
SMEs Small and medium enterprises.
80
Glossary (V/V)
APPENDIX
Term Definition
SNP / SP Senior non preferred debt / Senior preferred debt.
SRB Single Resolution Board.
SREP Supervisory Review and Evaluation Process.
Subordinated MREL Minimum Requirement for own funds and Eligible Liabilities to absorb losses, includes instruments eligible for total capital and senior debt non-preferred.
TBVPS Tangible book value per share: a quotient between:
• Equity less minority interests and intangible assets; and
• The number of fully-diluted shares outstanding at a specific date.
Tier 2 Tier 2 capital includes revaluation reserves, hybrid capital instruments and subordinated term debt, general loan-loss reserves, and undisclosed reserves.
TLTRO Targeted long-term refinancing operation conducted by the European Central Bank.
Total liquid assets Sum of HQLAs (High Quality Liquid Assets within the meaning of Commission Delegated Regulation of 10 October 2014) and the available balance under the facility with the European Central Bank (non-
HQLA).
Trading income Gains/(losses) on financial assets and liabilities. Includes the following line items:
• Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net;
• Gains/(losses) on financial assets not designated for trading that must be designated at fair value through profit or loss, net;
• Gains/(losses) on financial assets and liabilities held for trading, net;
• Gains/(losses) from hedge accounting, net;
• Exchange differences, net.
TTM Trailing 12 months.
Pintor Sorolla, 2-4
46002 Valencia
www.CaixaBank.com
Investor Relations
+34 93 411 75 03
Av. Diagonal, 621-629 - Barcelona
www.CaixaBank.com